December, 05 2005
Tata investment in Bangladesh takes political twist
While the Bangladesh Nationalist Party led coalition government appears keen to seal a $3 billion agreement with India's Tata Group, political considerations may come in the way of finalizing the deal. The government is considering the possibility of repercussions from what is being called the "anti-India factor" a year before the general elections, as per a report in local daily. It is reported that despite its willingness to sign the deal, the government may prolong the process of striking a formal deal to avoid taking political risks in view of incoming elections
Sources close to the Tata Group said it would wait "no longer than January 2006" for a final agreement on its investment proposals that include steel, fertilizer and power plants besides exploration of a coal mine. Tata's executives are expected to sit with government's negotiators, led by the communications secretary, for four-day talks from December 19 to 22 to resolve the pending issues, such as fiscal incentives, gas pricing and gas security, and coal mine lease, said sources in Bangladesh's Board of Investment.
Steelco to increase capacity by 66,000 tonne
The Steelco Gujarat Limited SGL is planning to expand its production capacity by 66,000 ton in the second phase of its restructuring. The company would expand its output capacity to 200,000 ton from present 144,000 ton by the end of December 2007.
The company aimed to achieve 25 to 30% growth by the year 2007 in volume handling. In the second phase of the plan, the company will lay emphasis on the de-bottlenecking in its operation and capacity expansion.
Indian coal mining companies may sell surplus directly
It is reported that Indian coal ministry is examining legal feasibility of allowing companies to sell surplus coal directly to end users from captive mines within the existing provisions of the Coal Mines (Nationalization) Act, 1973 without going through the tough route of amending the present nationalization act
Under the current provisions, surplus coal from captive mines is allowed to be sold to another approved end user with the prior approval of the Central government.
It has been proposed that excess coal production would be acquired by CIL that would then retain a service charge that would be remitted to the captive producers.
Coal production from captive mines constitutes just a fraction of total production of about 400 million tonne of coal. However, as surplus production from these mines would be crucial to meet the coal demand-supply gap in the country, new ways are being considered to avoid this production from getting wasted.
The Planning Commission has also asked the coal ministry to increase coal from captive mines to 50 million tonne by 2012. It has also suggested that the captive mines should be allowed to sell up to 15% of their production to CIL under pre-negotiated agreements or directly to end-users against current fuel supply agreements with the PSU.
CITU resolves to unite steel workers in West Bengal
The state council of Bengal CITU has resolved to build up a sustained movement in those newly set up iron and steel units where labour laws are flouted with impunity. A would be organized on December 22 to discuss the course and form of the movement.
CITU had submitted a memorandum to West Bengal government stating that the newly set up sponge iron and ferro iron industries in the state had been persistently flouting labour laws and depriving the workers of their legitimate dues. The management would in very many instances not allow the workers to set up unions. No lists of workers, regular or otherwise are kept. Minimum wages act is ignored. Workers are mistreated and put to sweating away for more than 12 hours a day and without overtime.
43rd Metallurgists Day celebrated at Rourkela
43rd Metallurgists Day was celebrated by Indian Institute of Metals IIM on 1st and 2nd December at SAILs Rourkela Steel Plant RSP, with international conferences on The State of the Art in Blast Furnace Practice and The Status of Iron-Making Technologies
Nearly 200 delegates from different steel industries, both government and other organizations connected to the steel industry were present on this occasion. More than 20 delegates from outside India also participated in the two-day long conference. Dr T Mukherjee deputy MD of TISCO, Dr SK Bhattacharya MD of DSP, Dr Sanak Mishra MD of RSP, Mr UP Singh MD of BSL, Mr KK Khanna director technical & commercial of SAIL and Mr Nilotpal Roy MD of IISCO, graced the occasion.
Dr T Mukherjee said that every nation has some competitive advantage and the rich iron ore resources give India a competitive advantage over others. Hence the Blast Furnace Technology plays a key role in converting this advantage into reality, he added. Delving deep into the development of new blast furnace technologies, Dr Mukherjee said, the capacity of the existing blast furnaces could be increased to a great extent through innovative interventions.
MCLs Hingula coal mine faces agitation
MCLs Hingula coal mine which produces a daily average of 20,000 tons of thermal coal and has witnessed obstructions 50 times in the first 180 days in the current year is facing yet another sustainable agitation by its affected villagers of Gopalprasad from 7 December mainly on the basis of job.
At a meeting held at Hingula Pitha recently villagers decided to go for indefinite agitation to paralyze the mine because of non-clearance of 201 jobs for their rehabilitation currently pending with MCL authorities.
This job list was finally submitted to MCL by the Angul district collector in June for final approval, they said. The list was initially prepared by a team of MCL and district officials following the rehabilitation policy of state, 1989. As policy stipulations, those who lose their dwellings, homestead land and one-third of his tenancy land come under category A oustees and are guaranteed for employment. MCL authorities refuse to approve the list for appointment pointing out certain cases where categorization has been diluted and irregularities occurred.
MCL so far has given 400 jobs to the land oustees of Hingula. Another list of about 400 jobs for Gopalprasad is under process. Recently 201 names were sponsored in the first phase.
GAIL may separate marketing and transmission operations
Gas Authority of India Limited GAIL is reported to be waiting for government approval for setting up the proposed Petroleum Regulatory and Natural Gas Board (PRNGB). The regulatory board would take a final call on whether GAIL needs to separate its gas trading business from gas transmission activities.
The Petroleum Ministry, which has got the Group of Minister's approval on the Bill to set up PRNGB, is hoping to introduce the Bill during the ongoing winter session of Parliament.
GAIL, which is currently undertaking both gas marketing as well as transmission activities, would be required to separate its gas trading business from transmission activities as the gas markets move towards maturity.
Coking coal price cut by 4% in 2006 as supplies rise
As per a survey report published, world's major coal miner may cut coking coal prices by 4% from April 2006 because of increased supplies and cutbacks in steel production. Coking coal prices may fall to $120 a metric ton starting on April 1, from $125, according to the median estimate of nine analysts. Estimates of a decline ranged from 4% to 16%. Whereas one analyst said prices may rise.
Coking coal producers this year raised production to take advantage of prices which went up by 125% from April 1, 2005. Global coking coal exports are expected to rise 3.6% to 215.8 million tons, from 208.3 million tons in 2004, according to the Australian Bureau of Agricultural and Resource Economics, the government commodity forecaster. Australia is the world's biggest coal exporter. Exports are expected to rise another 5.4% in 2006, the Canberra-based bureau said.
Coal demand has been softening recently because of a build up of steel stocks and high coal inventories may also weigh on prices and lead to different rates of decline for different grades of coking coal
Benchmark coking coal prices are negotiated annually in individual talks between miners such as BHP Billiton and steelmakers such as Nippon Steel and Arcelor. Steelmakers may use slowing growth in steel production and high coal inventories to argue for lower prices. Global steel output may rise 4.9% next year, slowing from 6.1% in 2005
Chinese auto industry facing excess capacity
China's auto exports exceeded imports for the first time, by 7,000 units in the first ten months this year, the Ministry of Commerce reported and a senior economic official warned of an industry overcapacity. Auto exports more than doubled from January to October to 135,000 units, while imports fell 11.6% YOY to 128,000.
Mr Ma Kai, minister in charge of the influential State Development and Reform Commission, told in a conference in Beijing that the auto industry was plagued by unneeded production. The overcapacity has already reached 2 million units, and the industry would be further pressured by an estimated turnout of 2.2 million from auto plants that are being built, as well as 8 million from those planned, Mr Ma acknowledged.
The Ministry of Commerce report said that while automobile export largely included low priced trucks and small cars, mostly to developing nations, such as Algeria, Syria and Vietnam, imports included costly, upscale models mainly from Japan, Germany.
Under a commitment to WTO China will remove tariffs on auto imports by the end of 2006.
Speculation boosts shares of U.S. Steel
US Steel Corp. shares rose 13% last week after a bidding war emerged for Dofasco Inc when ThyssenKrupp agreed to pay $4.1 billion for Dofasco, topping an earlier bid by Arcelor
But analysts were divided about the prospect US Steel may be a target. Mr Charles Bradford, steel industry analyst at Soleil Securities in New York, said US Steel's share price to earnings ratio makes it an even more attractive takeover candidate. "It makes twice as much sense for somebody to buy US Steel than Dofasco," he said. Mr Bradford said the price offered by ThyssenKrupp is proof of his belief that steel industry fundamentals are strong despite a recent slump in steel prices.
But Bradford said he was not aware of any interest in acquiring the company, and on Friday, UBS analyst Ms Timla Tanners indicated that a buyout of US Steel by another steel company such as Arcelor is unlikely.
Chinese coal output to satisfy demand 2006
China's coal output will reach 2.2 billion tons in 2006 and satisfy the country's demand, said a report from the National Development and Reform Commission (NDRC)
Under the national macro-control policy, the growth rate of electric power and metallurgical, chemical and building material production will slow down. And the demand for coal will not rise as fast as this year, said the report.
Although the country is to strike a balance between the overall supply and demand of coal, inadequate coal supply might occur in some regions next year, the report said.
Chinese firms interested in buying Cape Lambert iron ore
Two major Chinese trading groups may become cornerstone investors in Cape Lambert Iron Ore in north-west Western Australia. Cape Lambert, formerly known as International Goldfields, acquired the Pilbara iron ore project in October, after the Robe River Mining Company abandoned it in 2001. Cape Lambert says it has been negotiating for the past six weeks with two overseas parties.
Executive chairman Mr Tony Sage says both companies have expressed an interest in buying all of the ore produced from Cape Lambert. "If you've got a buyer from the ore from 2009 for the next 20 years after that when you're ... finalizing your bankable feasibility, you go to a bank, you've got a buyer at a certain price, so it really does put the project really on the map," he said.
More mine accidents in China kill 16 and 45 missing
Three more mining accidents over the weekend have claimed 16 lives and left 45 people missing. Explosions ripped through two separate collieries on Friday morning in Guizhou Province in Southwest China. 16 miners were killed, 15 were rescued, and 3 were still missing yesterday.
The third of the latest tragedies unfolded on Friday night when a coal mine in Central China's Henan Province was flooded, leaving 42 miners missing. Eight pumps were still in operation yesterday to drain around 3,000 cubic meters of water. The mine is a privately run one and has no safety license, according to the Xinhua News Agency.
The three accidents came hot on the heels of a massive explosion on November 27 which killed at least 169 in the State-owned Dongfeng Coal Mine in Northeast China's Heilongjiang Province.
FMG moves closer to big Pilbara ore project
Fortescue Metals Group FMG announced that its two deposits Christmas Creek and Cloud Break in the Pilbara's Chichester Ranges jointly hold more than one billion tonnes of iron ore.
The company signed state agreement acts last week, providing Fortescue with more certainty that the project will go ahead. Under the agreement, Fortescue can only produce up to 45 million tonnes of ore annually, but Fortescue's Mr Graeme Rowley says it is aiming higher. "We have the capacity with ministerial approval to complete up to 100 million tonnes a year," he said.
New coal mine announced for Upper Hunter
Plans have been unveiled for a new $300 million coal mine in the Upper Hunter Valley in New South Wales. Mt Arthur Coal says it has started consulting local residents about developing the new underground operation at the former Bayswater number three colliery near Muswellbrook.
The company intends to submit a development application to the local council by late next year and expects to begin mining in 2009. Project manager Mr Matt Cooper says the use of existing facilities on the site will reduce the new mine's operating costs. "It includes underground mining techniques where we access the coal seams from existing open cut pits and the project will use the existing preparation plant and rail loading facilities," he said. "When the underground commences it will produce about six to eight million tonnes of coal a year."
Thai engineers improve performance of PVD coated tool steel
Non metallic deposits on the rake face of high speed steel HSS tools have a considerable effect on tool life. It is known that for carbide cutting tools used to machine steels, deposited layers containing aluminium, silicon and calcium are a key factor in increasing tool life and cutting speeds. However, the existence of alumina has detrimental effects on tool life.
The conditions required for the formation of these layers is, however, poorly understood. In a paper published in by Mr TL Banh, Mr QT Phan and Mr DB Nguyen from Thai Nguyen University of Technology, the authors examine the conditions for the formation of the deposited layers on the rake face of Physical Vapour Deposited Titanium Nitride (PVD-TiN) coated HSS cutting tools. These conditions were then correlated to tool wear.
It is reported in this study that the chemical composition of the inclusions in the steels does not play an important role in the formation of the layers. However, the existence of silicate inclusions in steel, especially their sizes and shapes, has a direct influence on layer formation. The existence of the silicate inclusions eliminates a built up edge on the cutting edge and may be involved with the formation of the white layer in the crater wear, leading to a reduction in tool wear.
US Coal companies supporting Byrd reelection
A group of West Virginia Republicans have formed a group to support Sen. Robert Byrds re election bid. The group is headed by former Secretary of State Mr James McCartney and includes Charleston businessman Mr Ted Armbrecht. First elected to the Senate in 1958, Byrd is running for an unprecedented ninth six-year term.
Mr Armbrecht said. Senator Byrd understands the challenges small entrepreneurs face in this worldwide marketplace and knows that our economy and our environment must go hand in hand if either is to prosper.
This year, between January and September, Byrd has raised more than $2.6 million. Several of Byrds larger donations came from coal industry executives, including Mr James Buck Harless of Gilbert, Arch Coal President Mr Steven Leer, CONSOL Energy VP Mr Stephen Young, Eaglehawk Carbon President Mr James Bunn and retired Charleston coal executive Mr L Newton Thomas.
